What Makes Flowserve (FLS) an Investment Bet?

Aristotle Capital Boston, LLC, an investment advisor, released its “Small Cap Equity Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter started with a risk-off environment from the previous quarter, but later regained momentum driven by broad-based elements. In the second quarter, the strategy delivered a return of 3.25% net of fees (3.41% gross of fees) underperforming the 8.50% total return of the Russell 2000 Index. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its second quarter 2025 investor letter, Aristotle Capital Small Cap Equity Strategy highlighted stocks such as Flowserve Corporation (NYSE:FLS). Flowserve Corporation (NYSE:FLS) is an industrial flow management equipment manufacturer. The one-month return of Flowserve Corporation (NYSE:FLS) was 10.87%, and its shares gained 8.85% of their value over the last 52 weeks. On July 22, 2025, Flowserve Corporation (NYSE:FLS) stock closed at $53.87 per share, with a market capitalization of $7.045 billion.

Aristotle Capital Small Cap Equity Strategy stated the following regarding Flowserve Corporation (NYSE:FLS) in its second quarter 2025 investor letter:

“Flowserve Corporation (NYSE:FLS), manufactures and provides aftermarket services for comprehensive flow control systems critical to a diverse range of end markets. We view the company as having an established track record of strong operating and financial fundamentals and the stock was trading at an attractive valuation. Subsequent to initiating the position, the company announced a merger with Chart Industries (GTLS) that is expected to enhance the combined companies’ ability to provide more products and services to their global customers’ projects.”

Why Flowserve Corporation (FLS) Crashed On Wednesday

A group of industrial workers in coveralls operating a large scale pump system in a factory.

Flowserve Corporation (NYSE:FLS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held Flowserve Corporation (NYSE:FLS) at the end of the first quarter, which was 60 in the previous quarter. While we acknowledge the risk and potential of Flowserve Corporation (NYSE:FLS) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Flowserve Corporation (NYSE:FLS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Flowserve Corporation (NYSE:FLS) and shared the list of most undervalued industrial stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.